pricing question

Discussion in 'Lawn Mowing' started by Johnson, Jul 1, 2004.

  1. Johnson

    Johnson LawnSite Member
    Posts: 47

    I was approached by a president of a home-owner association to give a bid on lawn service for a sub-division. I think the total sq. footage was something like 10,000 to mow and fert. This is for the entrance and exit common areas for the sub-division. They also need mulching done, edging and pruning.

    The company who does it now is a large outfit. I was given a copy of the current companies bid form to let me know what all needed done. I was amazed at the price they were charging to mow and for other services. They are charging $700 2 x per month just to weed beds, not including the $150 per cut to mow. Myself and my partner could mow, trim, and weed the beds in about 1.5 hrs. It seems like highway robbery at what this company is charging. I mean $700 to do a 1 hr job. That is insane.

    My question is, how can companies charge like this and get away with it. I have ran into this before. Am I missing something or is this just ridiculous pricing? Is there a big difference in pricing when it comes to commercial or bidding for a home owners assocciation?
  2. RedWingsDet

    RedWingsDet LawnSite Gold Member
    from Detroit
    Posts: 3,556

    i think the larger co's want to stay out of small stuff like that so they bid outrageous amounts so they hope they dont get it, but if they do get it, they are happy because they bid HIGH...

    but thats what i think.
  3. Mark McC

    Mark McC LawnSite Bronze Member
    Posts: 1,565

    I think Mark's right, and the nice part of this (and many other businesses) is that the big companies depend on economies of scale and tend to get away from smaller jobs. Lets in little feeders like us, who become big feeders, who tend to get away from smaller jobs, which lets in little feeders like us, who become big get the picture.

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